Free Cell Phone!…Or is it?

So is the cell phone your getting really a free cell phone!?

Today we are going to be talking about programs that the popular carriers use to get customer into their service. Some carriers are currently telling their customers they can get a new phone for FREE but what customers don’t understand is that they’re paying a monthly premium for that phone. Usually FREE phone means nothing is due at the time of sign up. Depending on what phone you get the retail value that you end up paying can be anywhere from $500.00 to $900.00 dollars. The carrier just breaks up the retail value into the 24 month period of the contract or until you stop service. If something happens and you stop service before the phone is finished being paid for, you get charged back the full amount that you owe for the phone.

A lot of people think this is a good way of getting a phone but in reality you’re paying a lot more money for what you’re getting. Let me give you guys an example:

You can go to T-Mobile and get a iPhone 7 for FREE (Zero Down) and walk happy with a new phone. They will break up the retail value of $649.99 into 24 payments of $27.10 and tack it onto your monthly bill. That’s a lot of money to add to your monthly total when most people are already trying to get there monthlies down!


You can go to another carrier like Verizon Wireless and get an iPhone 5s and pay the discounted price of $199.99 and get the phone today WITHOUT having to tack on a high premium monthly payment for the phone.

All the big carriers have started this type of program and are giving customers a discount on the monthly access amount so you sign up for the monthly payment programs. Verizon Wireless has Verizon Edge, T-Mobile has JUMP and AT&T has NEXT.

This blog is not to deter people from signing up for these programs but for you guys to understand that sometimes it’s just better to sign the contract then and pay a higher monthly premium on your bill.

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